Written by Tony Loxton
Some in the retail business like to rely on their intuition when it comes to making decisions. Others prefer an evidence-based approach. While you shouldn't be gambling with the future of your company based off a gut feeling, this does lead to a tough question to answer as a retailer: how do you know your evidence-based approach is the right one?
The answer to this question is extremely complex, which is why we’ll be focusing on one KPI that you should be using (if you aren’t already doing so). This vital retail KPI is units per transaction (UPT) or items per transaction (IPT). This is used to measure the average number of items a customer will purchase during a single visit to a store, and is vital for ensuring successful sales growth.
Here are six tips you can use to boost this KPI:
If you’ve ever worked the floor in a retail store, you will know how hours can go by without a single customer, followed by a mad rush where you suddenly feel understaffed. This might not just be a feeling though. If your company is not tracking foot traffic and analysing it correctly, they may be incorrectly scheduling shifts, creating a situation where you are understaffed during peak hours and overstaffed during quieter periods.
Retailers can use data analytics with foot traffic tools to ensure that your work rosters are optimised for your peak periods. This will allow your sales staff more time to engage with customers, increasing opportunities for cross- and upselling.
Maximising UPT doesn’t just happen by accident — firstly it requires focus, which means your staff need to know it’s an important KPI that’s being measured and tracked. Next, they need to be trained on how to maximise it. This can be done by teaching them how to pair particular products, or simply to ask more questions of the customer. In our experience, increasing focus on UPT by making it top of mind with your staff and training them accordingly will deliver excellent results. Data analytics can be used to measure how much of an impact your additional training is having on your staff.
One of the details you can identify through retail data analysis is the conversion rate of departments or stores. By analysing your data, you can pinpoint which departments complement each other in order to take advantage of opportunities for cross-selling.
What strategies are you implementing to increase customer loyalty? Are these short-term improvements, such as extra loyalty points on purchases, or are they long term, such as improving the overall customer experience by ensuring you have sufficient sales and service staff on the floor? A healthy mix of short and long term strategies will ensure that customers think of your store first when they’re deciding on a purchase.
When designing the layout for your retail store, you should embrace simulations and analytics that help you identify the best floor plan to keep customers in-store. Our data shows that the time a customer spends in-store directly relates to increased UPT and basket size. Once your floor plan has been brought to life, continued analysis will help you identify if any further optimisations need to be made.
Using data analysis you can identify which products are popular and which are not, and adjust your stock orders accordingly. After all, there’s little point in keeping a large stock of products on your shelves that simply end up gathering dust.
These are just some of the strategies you can take advantage of to increase your basket size, or UPT.
Unlock a new world of insights with real-time people counting solutions. Blix offers a real-time people counting solution and retail store analytics that can help you track foot traffic and customer experience by the hour, day, week or month, allowing you to develop deeper insights that help grow your business.
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